With subcontracting to Foxconn in China, some ethical
problems are associated with them. One being that the target the poor working
conditions which include low pay, long hours, mandatory overtime with little to
even none over pay and poor on safety issues. The ethical problem with this is
that Apple is aware of the conditions and still has not done a single thing
about it. Apple should take initiative and suggest improving the conditions of
working with a greater pay and safety laws. If that doesn’t work out, Apple
will need to be more affirmative and pressure the subcontractors or move their
business elsewhere if nothing is to be done about the issues. If China can’t
provide the pay or the overtime pay, Apple should provide the working with
payments themselves. They could also fix a new minimum salary and a strict work
schedule for the employees and employers. Another ethical problem is with the
outsourcing in China, the Americans aren’t benefiting from their decisions. Apple
could equally distribute the jobs associated with the production of the IPhone
to the Americans and Chinese individuals. Without damaging their reputation,
Apple needs to be cautious with who they partner with, such as Foxconn.
Monitoring and ensuring that they are treating their employees fairly and
maintain a good and safe environment to the employees will decrease any
problems in the future.
The outsourcing undertaken by Apple is a good thing for
China because it keeps the consumer costs down, which is a key factor for the growth
of the company. For example, if the costs are low, so does the prices and that
is when the demand gets higher. With this proposition, the company is making money
and able to spend more money on the innovation and research in the United
States. Apple does however need to continue looking at the working conditions
of the employees in China and assemble a standard that needs to be followed.
With focusing more on the Chinese economy, the American is not growing. The
American economy will be damaged. The unemployment rate will increase, people
will spend less money, and there will be decrease in consumption. Overall, the
outsourcing is a defect to the American economy even with the positive outlook.